HSBC may exit Algeria to focus on more profitable markets

DUBAI: HSBC Holdings Plc is reviewing its operations in Algeria and may exit the North African country as the bank focuses on more profitable markets, according to a person with knowledge of the matter.

The London-based bank hasn’t yet made a decision on its future plans in the country, where it has three retail branches, commercial banking and employs about 140 staff, the person said, asking not to be identified because the matter is private. A spokesman for HSBC in Dubai said the bank doesn’t comment on market rumors and speculation.

HSBC reported a bigger first-quarter profit than analysts forecast, weathering turbulence in global markets, as chief executive officer Stuart Gulliver implements a three-year plan to pare back HSBC's global network by shutting money-losing businesses and eliminating jobs. Since 2011, Gulliver has slashed more than 87,000 positions, exited at least 80 businesses and reduced the bank's sprawling footprint to 71 countries and territories from 88.

In the Middle East, the bank is planning to sell its operations in Lebanon and has received interest from local banks, people with knowledge of the matter said last month. It also operates in the United Arab Emirates, Egypt, Qatar, Oman, Bahrain and Kuwait. In Saudi Arabia, the bank holds a 40% stake in Saudi British Bank and a 49% share in HSBC Saudi Arabia.

A planned sale of its unprofitable Turkish unit was scrapped earlier this year after the bank struggled to find a buyer, people with knowledge of the matter told Bloomberg in February. The bank is building a new Middle East headquarters in Dubai, where it has been operating since 1946, as it combines staff from three locations in the city. – Bloomberg